Landbank loans to LGUs hit P62 billion

MANILA, Philippines — State-run Land Bank of the Philippines has granted P62.06 billion in loans to local government units nationwide as of end-October, the bulk of which were used to finance agricultural and infrastructure projects.

About 37 percent of the amount, or P22.96 billion, was directed to farm and fisheries projects initiated to mitigate the pandemic’s impact on agriculture stakeholders.

Another P5.82 billion was used for transportation projects and P5.23 billion for health care to improve local infrastructure during the health crisis.

Landbank president and CEO Cecilia Borromeo said the agency stands ready to fund development projects initiated by local governments.

Last year Landbank invested P10 billion in the Restoration and Invigoration Package for a Self-Sufficient Economy Toward Upgrowth for LGUs, or RISE UP LGUs. The program, which will run for five years, seeks to bankroll projects to boost the local economies.

Local governments can borrow as much as they need under RISE UP LGUs, provided that the loan exposure falls below their net borrowing capacity.

Landbank gives a grace period of up to one year on principal payment and has set the interest at 4.5 percent per annum for the first year, subject for repricing thereafter.